16-1-2024 (KUALA LUMPUR) Former Malaysian Finance Minister Daim Zainuddin has been struck by illness, casting a shadow over the widening investigation conducted by the Malaysian Anti-Corruption Commission (MACC). The probe, initially centered around Daim’s family finances, has now expanded to encompass his business proxies, prominent corporate figures, and a substantial cross-border corporate venture with Singapore in the late 1990s.
Simultaneously, a legal battle is brewing in the Malaysian courts.
On Tuesday (Jan 16), the High Court heard arguments from Daim’s legal team and government prosecutors regarding a lawsuit filed by the ex-politician’s family. They seek an order compelling the agency to cease all investigations, release the seized Ilham Tower, and return confiscated documents. Representing Daim’s family, Tommy Thomas, Malaysia’s former Attorney General, contended that investigating Daim under laws formulated after his retirement is unjust, especially given his age of 85. However, federal counsel Liew Horng Bin argued against limiting the investigative authority based on statutory timelines.
The decision on this legal tussle is expected on March 4, as declared by Judge Wan Ahmad Farid Wan Salleh.
Sources reveal that Daim, frail and suffering from kidney-related ailments, was admitted to a private hospital on the outskirts of Kuala Lumpur just before a scheduled meeting with MACC investigators. Requests to record his statement at Assunta Hospital were declined by his medical team, citing his inability to undergo questioning. As of Tuesday, there has been no change in this situation, with no comments from Daim’s office executives.
The MACC’s pursuit of Daim is part of a broader anti-money laundering investigation initiated in late May last year. This investigation revolves around a contentious corporate transaction valued at RM2.3 billion (US$500 million) in November 1997 involving Renong Bhd and United Engineers Malaysia Bhd (UEM).
In response to the probe, MACC froze the accounts of companies linked to Daim’s business and directed him to disclose financial holdings and assets belonging to his family. Daim, however, has resisted these demands, leading to the seizure of Ilham Tower on Dec 21, escalating the confrontation.
The MACC has intensified its scrutiny, now delving into the affairs of Daim’s nominees and associates, who represent companies believed to be connected to the ex-politician. Notable figures in this list include Mohd Nasir Ali, Lutfiah Ismail, and lawyer Josephine Premela Sivaratnam, representing entities such as Kuala Lumpur City Corp Bhd, Plenitude Bhd, and Langkah Bahagia Bhd.
Daim, one of the nation’s wealthiest and politically influential figures, played a pivotal role in shaping Malaysia’s economy and corporate landscape. The MACC is now focusing on Daim’s behind-the-scenes involvement during his government tenure.
The ongoing investigation is particularly interested in corporate transactions viewed as forced divestments, especially during the closure of the Central Limit Order Book (CLOB) in September 1998. This informal trading platform, established in Singapore in 1990, traded Malaysian stocks when Kuala Lumpur prohibited such trading on the Singapore exchange.
The financial crisis and political turmoil in 1998 led to Malaysia imposing capital controls, fixing the local currency, and banning stock trading outside the country. Daim, back in the government post-Anwar Ibrahim’s sacking, approved a plan by a close associate, Singapore businessman Akhbar Khan, to manage the return of frozen equities worth roughly US$4 billion.
The subsequent fallout, known as the CLOB affair, strained bilateral relations with Singapore and witnessed a substantial corporate purge in Malaysia, implicating businesses linked to Anwar Ibrahim. The ongoing probe is now examining Daim’s alleged role in the forced divestment of Multi-Purpose Holdings Bhd in 1999, involving tycoon Lim Thian Kiat and businessman Akhbar Khan.
As investigations progress, both Daim and Akhbar Khan are expected to provide statements to the MACC in the coming days. The ramifications of this high-stakes legal and political battle are poised to reshape Malaysia’s corporate landscape.
